WallStSmart

Provident Financial Services Inc (PFS)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 2940% more annual revenue ($26.35B vs $866.82M). PFS leads profitability with a 33.6% profit margin vs 28.7%. PFS appears more attractively valued with a PEG of 1.61. PFS earns a higher WallStSmart Score of 80/100 (B+).

PFS

Strong Buy

80

out of 100

Grade: B+

Growth: 9.3Profit: 9.0Value: 10.0Quality: 5.0

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PFSUndervalued (+77.7%)

Margin of Safety

+77.7%

Fair Value

$104.36

Current Price

$20.88

$83.48 discount

UndervaluedFair: $104.36Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PFS6 strengths · Avg: 9.7/10
P/E RatioValuation
9.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
33.6%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.5%10/10

Strong operational efficiency at 54.5%

EPS GrowthGrowth
72.1%10/10

Earnings expanding 72.1% YoY

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

PFS1 concerns · Avg: 4.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PFS

The strongest argument for PFS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 33.6% and operating margin at 54.5%. Revenue growth of 15.2% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : PFS

The primary concerns for PFS are PEG Ratio.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

PFS profiles as a growth stock while USB is a mature play — different risk/reward profiles.

USB carries more volatility with a beta of 1.04 — expect wider price swings.

PFS is growing revenue faster at 15.2% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

PFS scores higher overall (80/100 vs 75/100), backed by strong 33.6% margins and 15.2% revenue growth. USB offers better value entry with a 75.8% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Provident Financial Services Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Provident Financial Services, Inc. is the banking holding company for Provident Bank offering various banking products and services to individuals, families and businesses in the United States. The company is headquartered in Jersey City, New Jersey.

U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

Want to dig deeper into these stocks?